EU summit prompts sharp stock gains

U.S. stock indexes closed with sharp gains Friday, prompted by key policy decisions made at an EU summit in Brussels. With many details left for a later date, heads of state in the economically troubled region agreed to form a strong, centralized banking regulator and give countries permission in the future to request bailout funds for their banks rather than for their governments, a step meant to avoid adding to sovereign debt burdens. In Washington, the U.S. Commerce Department said consumer spending was flat in May for the first time since November 2011. Incomes rose marginally in the month. By close of trading on Wall Street, the Dow Jones industrial average added 277.83 points, 2.2 percent, to 12,880.09. The Standard and Poor's 500 index added 33.12 points, 2.49 percent, to 1,362.16. The Nasdaq composite index gained 85.56 points, 3 percent, to 2,935.05. On the New York Stock Exchange, 2,688 stocks advanced and 407 declined on a volume of 4.1 billion shares traded. The 10-year benchmark treasury note fell 20/32 to yield 1.654 percent. The euro rose to $1.2666 from Thursday's $1.2444. Against the yen, the dollar rose to 79.80 yen from 79.46 yen. In Tokyo, the Nikkei 225 index climbed 1.5 percent, 132.67, to 9,006.78. In London, the FTSE 100 index added 1.42 percent, 70.09, to 5,571.15.